NYSE$FUL

H.B. Fuller Company · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported strong profit growth and record fourth quarter adjusted EBITDA margin on exceptional execution and proactive response to significant customer destocking activity throughout the year.

H.B. Fuller reported Q4 2023 results with net revenue of $903 million, a decrease of 5.8% year-on-year. Adjusted EPS was $1.32, up 27% year-on-year. The company achieved a record fourth quarter adjusted EBITDA margin, driven by pricing and raw material cost actions, restructuring benefits and general cost reductions.

  • Achieved strong profit growth and record fourth quarter adjusted EBITDA margin on exceptional execution and proactive response to significant customer destocking activity throughout the year.
  • Net revenue was $903 million, down 5.8% year-on-year; net revenue was up 1.2% year-on-year on a 13-week comparable basis; organic revenue decreased 3.5% year-on-year, driven by slightly lower pricing and volume.
  • Adjusted EBITDA was $173 million, up 22% year-on-year, and adjusted EBITDA margin expanded 440 basis points year-on-year to 19.1%.
  • Adjusted EPS (diluted) was $1.32, up 27% versus the prior year, driven by strong operating income growth.

Headline financials

Total Revenue

$903M

Previous: $958M-5.8%
EPS (adj)

$1.32

Previous: $1.04+26.9%
Adj. EBITDA Margin

19.1%

Previous: 14.7%+29.9%
Capital Expenditures

-$9.59M

Previous: $31.6M-130.3%
Net Income

$45M

Previous: $48M-6.3%
Operating Income

$129M

Previous: $62.1M+107.3%
Gross Profit

$274M

Previous: $248M+10.4%
Stock-Based Comp

$3.63M

Previous: $4.01M-9.4%

Revenue & EPS history

H.B. Fuller · Revenue · Quarterly

$903M

Q4 2023-5.8%vs Q4 2022
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Forward guidance

Net revenue growth for fiscal 2024 is expected to be in the range of up 2% to 6% with organic revenue flat to up 3% versus fiscal 2023, reflecting a rebound in demand following the unprecedented customer destocking activity in fiscal 2023, offset by slightly lower pricing as customers qualify lower price formulations and index-based pricing has a greater effect.

Tailwinds

  • Net revenue growth for fiscal 2024 is expected to be in the range of up 2% to 6% with organic revenue flat to up 3% versus fiscal 2023, reflecting a rebound in demand following the unprecedented customer destocking activity in fiscal 2023, offset by slightly lower pricing as customers qualify lower price formulations and index-based pricing has a greater effect.
  • Adjusted EBITDA for fiscal 2024 is expected to be in the range of $610 million to $640 million, equating to growth of approximately 5% to 10% year-on-year.
  • Adjusted EPS (diluted) is expected to be in the range of $4.15 to $4.45, equating to a range of up 7% to 15% year-on-year.
  • Operating cash flow in fiscal year 2024 is expected to be between $300 million and $350 million
  • Capital expenditures are expected to be approximately $140 million.

Headwinds

  • Slightly lower pricing as customers qualify lower price formulations and index-based pricing has a greater effect
  • The core tax rate, excluding the impact of discrete items, is anticipated to be between 27% and 28% in fiscal year 2024.
  • Net interest expense for fiscal 2024 is expected to be between $115 million and $125 million.
  • Operating cash flow in fiscal year 2024 is expected to be between $300 million and $350 million
  • Capital expenditures are expected to be approximately $140 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-0.0%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+2.0%

Avg return

30 days after

49%

33 / 68 earnings

Positive

+10.6%

Q2 2023

Best reaction

-14.0%

Q3 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026
Q1 2026-0.6%-5.5%
Q4 2025-1.9%-10.5%+4.3%
Q3 2025-3.9%+0.0%+3.7%
Q2 2025-0.6%-1.7%-2.9%
Q1 2025+6.1%+5.3%+0.5%
Q4 2024-3.2%-2.8%-5.1%
Q3 2024-0.7%-2.7%-7.2%
Q2 2024+0.9%+0.4%+11.7%
Q1 2024-4.4%-4.5%-10.1%
Q4 2023+0.0%+1.4%+0.7%
Q3 2023+6.6%+1.7%-3.5%
Q2 2023+10.6%+10.8%+12.9%
Q1 2023+0.1%-4.0%-3.2%
Q4 2022-5.3%-6.0%-1.5%
Q3 2022+1.8%-0.1%+8.8%
Q2 2022+0.7%-1.5%+1.6%
Q1 2022-0.8%+2.4%+2.8%
Q4 2021-4.6%-5.2%-7.2%
Q3 2021+8.8%+9.3%+15.4%
Q2 2021-2.8%-3.8%-4.2%
Q1 2021+8.4%+8.5%+15.8%
Q4 2020+2.2%+0.3%+11.9%
Q3 2020-0.9%-0.6%+7.5%
Q2 2020+3.5%+8.6%+9.2%
Q1 2020-2.9%+1.3%+18.9%
Q4 2019-1.6%-1.2%-3.4%
Q3 2019-0.3%-0.6%+4.0%
Q2 2019+2.4%+3.7%+9.9%
Q1 2019+3.5%+5.1%+3.9%
Q4 2018+4.7%+5.3%+13.6%
Q3 2018-7.6%-8.0%-26.1%
Q2 2018-2.3%-1.8%+2.7%
Q1 2018+2.5%-1.7%+4.1%
Q4 2017-3.6%-2.5%-6.5%
Q3 2017+4.4%+5.1%+3.2%
Q2 2017-1.8%-0.8%-0.9%
Q1 2017+0.9%-4.0%+0.6%
Q4 2016-3.9%-4.9%-1.0%
Q3 2016-7.0%-4.5%-7.8%
Q2 2016-0.8%-11.2%-0.5%
Q1 2016-0.7%
Q4 2015+3.9%
Q3 2015-3.0%
Q2 2015-1.3%
Q1 2015+1.9%
Q4 2014-2.5%
Q3 2014-14.0%
Q2 2014-5.3%
Q1 2014+3.1%
Q4 2013-3.6%
Q3 2013+6.6%
Q2 2013+1.9%
Q1 2013-2.3%
Q4 2012+6.2%
Q3 2012-9.0%
Q2 2012-1.5%
Q1 2012+0.5%
Q4 2011-0.1%
Q3 2011+5.0%
Q2 2011+2.0%
Q4 2010+0.8%
Q1 2010+0.8%
Q1 2011+1.4%
Q4 2008-1.4%
Q2 2010-1.4%
Q3 2010+1.0%
Q3 2009+1.0%
Q4 2009+1.0%

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